Capital One $425M settlement: Here's everything you need to know
A federal court in Alexandria, Virginia, approved the deal after several customers sued Capital One. The lawsuit said the bank didn't offer competitive interest rates and didn't tell account holders when better options became available.
Instead of updating the rates on existing 360 Savings accounts, Capital One created a new product called the 360 Performance Savings account, which offered higher interest. But they didn't let current customers know about it.
According to the Consumer Financial Protection Bureau (CFPB), Capital One saved over $2 billion by keeping this two-tier system and not updating customers.
Also Read: Capital One Financial set to buy Discover Financial Services for whopping $35 billion
If you've had a Capital One 360 Savings account since September 2019, you may be eligible for a payment.
Check the official settlement website – Claim forms will be available after the court gives final approval.
Watch for a notice – You'll get a message by email or mail if you're eligible.
No lawyer needed – The process is simple and can be done on your own.
$300 million will go to customers who missed out on higher interest earnings. How much you get depends on how long you had your account.
$125 million will go to people who still have a 360 Savings account. These accounts will also start earning double the national average interest rate, as set by the FDIC.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
3 hours ago
- Hans India
The Rise of Algorithmic Trading in 2025: Speed, Scale, and Shifting Norms
In 2025, algorithmic trading isn't just a tool for Wall Street insiders - it's quickly becoming a staple for traders of all sizes. From institutional hedge funds to self-taught coders in coffee shops, more people than ever are turning to 'algos' to help them trade smarter, faster, and with more precision. According to a recent Yahoo Finance report, the global market for algorithmic trading reached USD 13.72 billion in 2024, up from USD 12.35 billion in 2023. This marks a compound annual growth rate (CAGR) of 11.29%, with expectations for the market to expand between 2025 and 2029 and reach USD 26.14 billion by 2030. Key growth drivers include the rapid adoption of cloud infrastructure, real-time analytics, and the rise of AI-based trading engines that surpass human reactivity. Both institutional investors and fintech firms are turning to automated systems to reduce latency and eliminate behavioral bias. Sources: YahooFinance At its core, algorithmic trading uses computer programs to automate trade execution based on preset rules tied to price, volume, timing, or other market data. The roots of algo trading trace back to the 1970s with early program trading among institutional investors. In the 2000s, high-frequency trading (HFT) became dominant on Wall Street. Now, in 2025, platforms like MetaTrader, QuantConnect, and Alpaca have made algorithmic trading accessible even to retail traders. Traders are increasingly drawn to algorithmic systems for several reasons. They execute trades in milliseconds, eliminate emotional bias, and can handle multiple instruments and strategies simultaneously. The London Stock Exchange Group (LSEG) observed growing demand in early 2025 for sub-millisecond execution and higher fill precision across both institutional and retail segments. This shift indicates that both institutional and retail traders are growing more comfortable relying on automated systems. Sources: Vocal Media, Mordor Intelligence While speed and precision remain crucial, the new frontier in 2025 is intelligence. Traders are no longer satisfied with simple rule-based bots. They want algorithms that adapt - machines that can read the market like a human, but act faster than one ever could. TradingPedia notes that the integration of AI into algorithmic trading is not just a trend but a transformative shift, enabling systems to evolve based on real-time feedback. This shift has led to widespread integration of machine learning into trading engines. Algorithms can now analyze historical and real-time data to predict price moves, optimize execution timing, and avoid risky market is quickly becoming a major driving force behind the next wave of algorithmic trading. These days, a lot of major trading firms are using cloud-based systems that let them update and run their trading models in real time, effectively turning their trading desks into live AI labs. These smart algorithms aren't just for stock markets anymore. They're now being used in forex, commodities, and even crypto. Because they can learn and adapt on the go, they help traders stay on top of fast-moving markets - especially when big news hits - without needing to jump in manually every time. Sources: The Business Looking ahead, algorithmic trading in 2025 and beyond is set to become even more powerful and accessible. As AI and cloud technologies continue to evolve, expect smarter, faster, and more adaptive trading systems that can navigate complex markets with minimal human input. This doesn't mean trading will be effortless or risk-free - successful algorithmic trading still requires solid strategies, careful monitoring, and ongoing refinement. But for traders willing to embrace these tools, the future offers exciting opportunities to level the playing field, improve efficiency, and capitalize on market moves like never before.
Time of India
7 days ago
- Time of India
Credit scores at risk: US Judge reverses Biden era medical debt rule; millions could be impacted
Representative image A Texas federal judge has reversed a BIden era rule that excluded medical debt from the credit reports, with a potential impact on 15 million Americans. The rule that came into effect this January, did not do away with the debt altogether, rather changed the method how credit scores of individuals would be calculated. It would have removed around $50 billion of medical debt from the credit reports of 15 million people. US district judge Sean Jordan, appointed by President Donald Trump in 2019 during his first term, observed in his ruling that the Fair Credit Reporting Act does not allow the Consumer Financial Protection Bureau (CFPB) to remove medical debt from reports and that it exceeded its authority. The CFPB had introduced new credit reporting rules in January, just before President Joe Biden left office. The independent agency estimated that the changes could generate an additional 22,000 mortgages annually and increase Americans' credit scores by an average of 20 points. Although the judge has blocked the implementation of these changes, he clarified that the CFPB is still allowed to "encourage" lenders to consider other categories of information when assessing creditworthiness. Since taking office for the second time, Trump has moved to eliminate what his department of government efficiency terms "waste, fraud, and abuse" across federal agencies. One of the first to come under scrutiny was the consumer protection agency, which quickly became a target and faced significant layoffs The CFPB had made the changes in January before President Joe Biden left office. The independent agency had calculated that the new credit reporting rules would result in an additional 22,000 mortgages every year and boost Americans' credit scores by an average of 20 points. Although the judge has prevented the advancement of these changes, he noted that the bureau can "encourage" creditors to use other categories of information. Dan Smith, head of the Consumer Data Industry Association, welcomed the decision, calling canceling the reversal of rule a move in the right direction. 'This is the right outcome for protecting the integrity of the system,' Smith wrote in a statement, according to Reuters. The decision comes just a week after Trump signed a massive spending and tax bill that includes sweeping cuts to Medicaid. New work requirements included in the law could strip millions of their coverage.
Time of India
15-07-2025
- Time of India
Employees at nation's consumer financial watchdog say it has become toothless under Trump
Live Events Different approaches Reverse-engineering Budget Cut (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The lights are on at the Consumer Financial Protection Bureau across the street from the White House , and employees still get paid. But, in practice, the bureau has been mostly inoperable for nearly six employees say they essentially spend the workday sitting on their hands, forbidden from doing any work by directive from the White bureau is supposed to be helping oversee the nation's banks and financial services companies and taking enforcement action in case of the situation is Kafkaesque: the main function seems to be undoing the rulemaking and law enforcement work that was done under previous administrations, including in President Donald Trump 's first consumers can no longer look to the bureau for help when it comes to their checking account, credit card, payday loan, auto loan or has neutered the watchdog, employees say, the culmination of a years-long effort by Republicans who felt the agency often went overboard in its current employee, who spoke on condition of anonymity because the directive forbids staffers from speaking publicly about their jobs, said outsiders would be amazed at how little work is being done. Employees are reluctant even to talk to one another, out of fear that a conversation between two employees would be considered a violation of the employee described the drastic shift in mission, from trying to protect consumers to doing nothing, as "quite demoralising".To gain an understanding of what is happening inside the CFPB, The Associated Press spoke with 10 current and former employees, as well as bankers and policymakers who used to interact with the bureau nearly every day but now say their emails and voicemails go into a black hole. The agency's press office doesn't respond to rank-and-file employees and former CFPB officials say they expected the bureau to keep doing its work under "Trump 2.0," although likely in a more restrained Trump's first term, his then-director, Kathy Kraninger, took a lighter approach to supervision and enforcement, but still some of the biggest financial settlements in the bureau's history took place during that Joe Biden's choice to run the bureau, Rohit Chopra, took an expansive view of its authority, targeting profitable practices by banks such as overdraft and credit card late fees, as well as investigating companies over credit reporting and medical even turned a spotlight on big tech companies that have increasingly made inroads into financial services. The CFPB ordered Apple to pay USD 89 million in fines and penalties for problems related to the Apple Venmo is used by millions to split a bill, and the bureau found that payment and funds transfer apps like PayPal and Venmo should fall under the federal consumer protection laws, just like and the financial services industry felt Chopra acted too aggressively, particularly with a proposal to cut overdraft fees to USD 5 from the industry average of USD 27 to USD bureau estimated the move would save consumers roughly USD 5 billion a year. The proposal was overturned by Congress with Trump's backing earlier this year."We are thankful that the Trump Administration recognised the harm to consumers, the market, and the overall economy posed by the CFPB's overreaches under its prior leadership," said Lindsey Johnson, president of the Consumer Bankers Trump 2.0, the bureau became a main target of the Department of Government Efficiency, then run by Elon Musk, who posted on X that the CFPB should "RIP" shortly after DOGE employees became embedded at the the bureau's acting chief, Russell Vought, the White House issued a directive that CFPB employees should "not perform any work tasks".The administration then tried to lay off roughly 90 per cent of the bureau's staff, or roughly 1,500 employees. Courts have blocked those layoffs, but there is a feeling inside the bureau that the court rulings are only a temporary blood in the water, companies that committed wrongdoing or had open investigations have lobbied the bureau and the White House for their punishments to be at the bureau say the only time their workdays get remotely busy these days is when the White House instructs them to begin rescinding one of these often involves "reverse-engineering" reasons why the bureau, which investigated and found that these companies did harm to consumers, now no longer believes that 2024, Navy Federal Credit Union agreed to settle claims that it illegally charged overdraft fees to its members. Among the customers at the USD 180 billion financial institution are Navy service men and women and cancelled the settlement last month, and Navy Federal will no longer have to pay back USD 80 million in fees.A spokesman for Navy Federal declined to comment on whether the credit union planned to return those funds to its members, as it originally said it 2023, the auto financing arm of Toyota was found to be illegally bundling products onto car buyers' auto loans, refusing to cancel those products and doing harm to customers' credit scores. Toyota was ordered to refund USD 48 million to harmed settlement was rescinded in mid-May. A spokesman for Toyota declined to say whether customers would be reimbursed."Companies are lining up to get out of repaying harmed customers," said Eric Halperin, former enforcement director at the bureau, who resigned earlier this not just settlements from the Biden era. At the end of Trump's first term in 2020, the CFPB sued the Chicago-based mortgage company Townstone Financial after the company's executives made statements that were seen as discouraging Black homebuyers from applying for a loan with the and its executives fought vigorously with the bureau, saying that words spoken on a podcast or on social media cannot be construed as discrimination or agreed with the bureau, and eventually Townstone settled in November, agreeing to pay a USD 105,000 Vought, the bureau said it would move to vacate the settlement and would return Townstone's fine. Courts have blocked the dismissal of that settlement, with one judge saying the CFPB wanted to commit "an act of legal harakiri that would make a samurai blush."The Associated Press sent a list of questions to the White House regarding President Trump's vision for the CFPB. The White House did not the lack of new initiatives and the scuttling of old ones frustrate employees the most, they also note that even everyday tasks like collecting consumer complaints about financial service companies have largely fallen to the CFPB has run a consumer complaint database for nearly a decade, basically an online portal where a consumer uploads a complaint and the bureau then forwards that complaint to the subject company.A report done by the office of Sen Elizabeth Warren , the senior Democrat on the Senate Banking Committee , found that the bureau is uploading roughly 2,200 complaints a day compared to the roughly 10,500 complaints it was doing in the months before Trump took came up with the idea for the bureau when she was a law professor at Harvard bureau did take an enforcement action on Friday. The pawn shop chain FirstCash Inc agreed to pay USD 9 million in refunds and fines to settle claims that it charged excessive interest rates on loans to armed service members, in violation of the Military Lending operates more than 1,000 stores and had net income of USD 259 million in bureau is going to be even further diminished in the coming months. The new budget law signed by Trump earlier this month cuts the CFPB's funding by roughly half, meaning the bureau will be forced into mass layoffs. Senate Democrats are looking for ways to restore that funding."The agency is still standing and its mission to protect consumers remains as important as ever," Warren said in a statement. "We will fight back using every tool at our disposal."That said, one supervision employee grimly joked that a 50 per cent budget cut to the bureau will mean little, based on how the bureau is currently operating."A 50 per cent cut of nothing is still nothing," they the meantime, employees go about their mundane routine: They continue to check their email once or twice a day to see if any of their previous work has been slated for being don't talk to anyone, not even the banks they are supposed to supervise. They wait to be laid only constants are the silence from bureau political appointees or the "mini funerals" that happen every Friday, when another batch of employees who have decided to leave the bureau voluntarily have their last day."I don't think I'll ever work in public service again," said one current employee, who has been looking for a new job for the past three months.
